USD/CNH Price Analysis: Wednesday's Doji signals downtrend exhaustion
|- USD/CNH's daily chart indicates the sell-off from May highs has run out of steam.
- Technical indicators suggest scope for a corrective bounce.
USD/CNH is sidelined near 6.83 at press time, having created a Doji candle on Wednesday.
A Doji is usually considered a sign of indecision in the market place. However, in this case, the candlestick has appeared following a notable sell-off from 7.19 to 6.81 and indicates seller exhaustion.
Wednesday's Doji has also validated oversold readings on the 14-day relative strength index and the stochastic indicator.
As such, the pair could bounce to the 10-day simple moving average (SMA), currently at 6.8690. On the downside, the Sept. 1 low of 6.81 is the level to beat for the bears.
Daily chart
Trend: Bear fatigue
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.